Good morning. If you recall yesterday when I wrote this Report the Dow was up 70 points and I mentioned that it was a nice start but as in life it’s how you finish. And equities did not finish well yesterday. Indeed it appears the “pop” we had Friday and yesterday morning was the opportunity the length was looking for to book some profits and reduce their exposure and positions. With no major economic or corporate news yesterday the Dow ended down 18 at 16,992, the S&P 500 fell 3 to 1,965 and the Nasdaq was off 0.5%, 18 points, to 4,455. From a technical perspective, last week the S&P fell below its 50 day moving average and has struggled to get back above it. Additionally, it hasn’t escaped the chart watchers that the S&P over the past 2 weeks has been making lower highs which means its losing momentum. Don’t forget the Fed is ending its bond buying program this month although it is keeping interest rates extremely low until probably next summer. The raising of interest rates is a conundrum. If the Fed raises interest rates it makes loans, and leverage, more expensive but the Fed would only raise rates if it views the economy is strengthening. There’s the ying-yang.

As I also said yesterday, don’t be surprised if we again test the long term support for the S&P. Support and resistance are rarely tested just once. And this morning the bears are working on getting there with Dow futures down 42 with earnings season beginning next Wednesday with Alcoa reporting.

The U.S. dollar eased off a little from its recent strength which helped commodities including oil with WTI closing 60¢ higher at $90.34 and Brent up 48¢ to $92.79. Just chatter in the big scheme of things. What’s really important is the signal Saudi Arabia sent last week when they cut their posted prices of crude. They are unequivocally telling the market “We are not going to give up market share this time.” We are on the verge of a price war and it would not surprise me if the Saudis continue to lower the price of crude looking for what price is necessary to begin impacting the production of crude from shale. This morning WTI is slipping 26¢.

After a big up day on Friday natural gas gave up that and more yesterday closing down 14.1¢ at $3.898. Again at the $3.90ish level. The weather forecasts yesterday morning shifted materially warmer and the selling came in like a tsunami. This morning the weather forecast reinforces the one yesterday with some beautiful weather in store for the Midwest and east next week followed by some slightly cooler than normal weather in the 11-15 day time frame. Being there were no major changes in the forecast and we’re down on support ($3.90), natty is unchanged from yesterday’s close (ok, technically it’s up $0.009).

Here’s an interesting one for you. Beginning in Cleveland back in the 19th century John D. Rockefeller amassed his fortune in the oil and refining industries after finding oil in western Pennsylvania. He was a visionary understanding the benefits that would flow to society by turning away from wood and other fuel oils of the age to the new fuel, oil and refined products. Recently his heirs, led by Mr. Stephen Heintz, the President of the Rockefeller Foundation, announced the Foundation would be completely dis-investing in fossil fuels and coal. Mr. Heintz stated that he is certain that Mr. Rockefeller “Would recognize that clean energy technology is the business of the future… The science is crystal clear on climate change.” Now I have no doubt that Mr. Rockefeller would be amenable to investing in alternative fuels but to turn his back on “what got him there” I seriously doubt. But then again, he doesn’t have a say now does he? Have a good day.